HOUSE BILL REPORT

REHB 1055

BYRepresentatives R. Fisher, Chandler, Zellinsky, Fraser, D. Sommers and Smith

Financing fire protection for state-owned buildings.

House Committe on State Government

Majority Report:  Do pass as amended.  (9)

      Signed by Representatives Todd, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; R. Fisher, Hankins, R. King, Morris, O'Brien and Silver.

House Staff:Barbara McLain (786-7135)

AS PASSED HOUSE FEBRUARY 13, 1990

BACKGROUND:

State-owned property is not routinely assessed for value and does not generate property tax revenue to support the provision of fire protection services to that property.  Therefore, the state has developed a variety of methods to reimburse the jurisdictions providing fire protection services.

Cities and towns are reimbursed through the Department of Community Development (DCD).  DCD is required to include in their budget funds sufficient to fund fire protection contracts made between state agencies and local communities.  The rate of reimbursement is calculated by dividing the total state-owned square-footage into the appropriation granted by the legislature. For fiscal year 1988-89, the allocation for the program was $437,000 for the 93 cities participating, translating into about 1.17 cents per square foot.

If a community and the contracting state agency agree that the money provided through DCD is inadequate, a separate contract may be negotiated for supplemental funds.  Six cities negotiate additional contracts, and the supplemental reimbursement is funded through each agency's budget.

State agencies and local school districts with equipment or buildings located outside city limits must negotiate a contract with the appropriate fire protection district.  The reimbursement of fire protection districts is not centrally administered under a single agency and the contracts negotiated can vary a great deal.

In addition, the six institutions of higher education do not all use the same method of reimbursement for fire protection to the jurisdictions in which they are located.

SUMMARY:

The Office of Financial Management is directed to study the methods used by the state in reimbursing communities and fire protection districts for fire protection of state-owned property.  The study shall make recommendations to improve the consistency of payments.  Under the recommended method, consideration may be given to the type of facility being protected, and payments below a recommended minimum are to be eliminated.

The study will be submitted to the Ways and Means and Governmental Operations Committees of the Senate, and the Appropriations and State Government Committees of the House of Representatives by December 1, 1990.

Fiscal Note:      Not requested.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    (Testified for in 1989):  Stan Finkelstein, Association of Washington Cities; Janice Cook, Mayor, City of Ellensburg; Donna Nylander, Ellensburg City Council; Doug Williams, Ellensburg City Manager; Holly Gadbaw, Mayor, City of Olympia; and Richard Cushing, Olympia City Manager.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    (Testimony heard in 1989):  The current system of reimbursement is both inconsistent and inequitable between communities.  The greatest financial hardship is borne by those cities with a large percentage of state-owned property within their jurisdiction such as Ellensburg, Olympia, Bellingham, and Walla Walla.

House Committee - Testimony Against:      None.